4 Money Saving Tips For The New Year
Did you know that only around 8 percent achieve their New Year’s goals?
That means 92 percent of people make a resolution but fail to accomplish it. While most New Year’s resolutions are health-related (55 percent), it’s important to keep in mind other types of resolutions for the New Year.
In addition to health-related resolutions, you should also make some finance-related resolutions that can help you save money.
Check out this guide to learn about the top fun ways to save money that should be apart of your New Year’s resolution!
1. Follow the 50/30/20 Rule
In the new year, you should make it your goal to start saving money by using the 50/30/20 rule.
This rule dictates that 50 percent of your income will go to necessities (such as rent, groceries, insurance, utilities, etc.), 30 percent of your income will go towards wants (vacation, dining out, movies, etc), and that 20 percent of your income will go into your saving’s account.
For example, if you make $4000 a month, you should be putting $2000 towards your necessities, $12000 towards your wants, and $800 into your savings.
If you follow this rule, you’ll have $9600 saved over the course of a year.
This is a very simple rule to follow and is great for those who don’t want to get caught up in a complicated budget.
2. Take Care of Your Debt
Make this coming year the year that you finally decide to tackle your debt head-on.
Debt robs you of your income, and it’s the biggest obstacle when it comes to saving money.
If you’re looking or a good way to tackle your debt, we suggest trying the debt snowball method. This method involves paying off your debts in order of smallest to largest.
You should also look into debt consolidation and debt settlement.
3. Cut Down on Groceries
Many people are shocked to find out how much money they spend on groceries each month.
In fact, Americans spend as much as 33 percent of their household income on groceries each month. And, the average man spends $290 per month on groceries, while the average woman spends $323 per month.
One of the best ways to cut down on your grocery budget is to plan out what you’re going to buy beforehand. This way, you won’t be tempted to buy a bag of chips here and a box of cookies there.
You should also consider trying grocery pickup, as this way, you won’t be tempted to pick up extra goodies when walking down the aisles.
4. Cancel Automatic Memberships and Subscriptions
While auto subscriptions are convenient, chances are, you’re over-subscribing and all of those monthly payments are adding up.
If you’re Netflix, Hulu. Spotify, HBO, a gym membership, or a trendy subscription box, it’s time to take a look at which ones are actually worth it.
You should also consider subscription sharing with family or friends, as this is another great way to save money.
Fun Ways to Save Money: Are You Ready to Save Big in the New Year?
Now that you know about these fun ways to save money, it’s time to get your plan in order to save big in the new year.
Be sure to check out this post on how to consolidate credit card debt without hurting your credit.